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Fox, Sky Agree to $15 Billion Acquisition

15 Dec, 2016 By: Erik Gruenwedel

21st Century Fox Inc. and Sky plc. Dec. 15 formally announced an agreement regarding Fox’s majority takeover of the satellite TV operator with an offer price of £10.75 per share ($13.52), or about $15 billion.

Sky has 20 million subscribers across operations in the United Kingdom, Italy and Germany. The deal represents a 40% hike on the company’s Dec. 6 share price. It also consummates media holdings held by Australian mogul Rupert Murdoch, who launched Sky in 1989 but retained minority ownership when it merged with satellite rival British Satellite Broadcasting. Murdoch attempted to buy out Sky in 2010 — a bid ultimately undermined by a phone-hacking scandal at one of Murdoch’s now shuttered tabloid newspapers.

“The strategic rationale for this combination is clear. It creates a global leader in content creation and distribution, enhances our sports and entertainment scale, and gives us unique and leading direct-to-consumer capabilities and technologies. It adds the strength of the Sky brand to our portfolio, including the Fox, National Geographic and Star brands,” Fox said in a statement.

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